Standard of living is one of the demands put forward by the unions after the farmers’ uprising in January 2024.
AGRICULTURE – At the heart of Farmers’ Demand Week is this topic: Remuneration. On the signs some condemn themselves for paying more than 400 euros per month, others warn about their level of debt in the face of an activity that should not be remunerated. However, some farmers make a (very) good living, especially winemakers. There is something to be lost.
What we must first bear in mind is that in France, agriculture is one of the sectors of activity where the difference in living standards is most marked. In its latest issue, INSEE indicates that in 2020, the richest 10% earned an average of 3,700 euros per month, compared to 900 euros for the poorest.
For comparison, 10% of French people earn 3,300 euros per month and the poorest 990 euros. INSEE also specifies that the standard of living is calculated based on annual disposable income, net of direct taxes and household composition.
Conventional farming pays more than organic
Then, agricultural income directly depends on the type of production sector. Thus in 2020, the average standard of living in the sector “ Beef Cattle » 19,500 euros, while that of the wine sector was 27,100 euros.
In most areas, conventional farming remains more profitable than organic farming. This difference is particularly evident for the two sectors that concentrate the largest share of organics: market gardening (21.5% organic in 2020) and fruit production (18.5%). Gross operating surplus per farmer, which measures profitability, was 57.7% and 31.1% lower in organic compared to conventional farming, respectively.
High poverty rate in small farms
In the current model, the standard of living also increases with the size of farms. Small farms have 23% of poor people, medium farms have 17% and large farms have 10%. The only exception to this rule: micro-farms, whose poverty rate reaches 15%.
Including all farms, the poverty rate for farmers is 16% and therefore at 14% for the general population. The latter is defined by a standard of living below 60% of the average standard of living.
INSEE emphasizes that, thanks to self-consumption of food products, agricultural households frequently report facing housing difficulties or consumption restrictions. Inversely related to income level, the poverty rate reached 11.5% for wine producers, but rose to 21.5% for beef producers.
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